Chapter 6 Objectives

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Nov 6, 2013 (3 years and 7 months ago)

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Chapter 6 Objectives


After reading Chapter 6, you will be able to:


Identify the three main sources of data that e
-
marketers use to address research problems.


Discuss how and why e
-
marketers need to check the
quality of research data gathered online.


Explain why the internet is used as a contact
method for primary research and describe the main
internet
-
based approaches to primary research.


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2

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Publishing as Prentice Hall

Chapter 6 Objectives, cont.

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Publishing as Prentice Hall

6
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2


Describe several ways to monitor the Web for
gathering desired information.


Contrast client
-
side, server
-
side, and real
-
space
approaches to data collection.


Highlight four important methods of analysis that e
-
marketers can apply to data warehouse
information.


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Publishing as Prentice Hall


Nestle Purina PetCare wanted to know whether their
Web sites and online advertising increased off
-
line
behavior.


Nestle Purina developed 3 research questions:


Are our buyers using our branded Web sites?


Should we invest in other Web sites?


If so, where should we place the advertising?


The Purina Story

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Publishing as Prentice Hall

The Purina Story, cont.


They combined online and off
-
line shopping panel data
and found that:


Banner
click
-
through rate was
low (0.06%).


31% of subjects who were exposed to both online and off
-
line advertising mentioned Purina.


The high exposure group mentioned Purina more than the
low exposure group.


Home/health and living sites received the most visits from
their customers.


Can you think of other Web sites besides petsmart.com
and about.com
that would be appropriate for
Purina
PetCare ads?


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©2009 Pearson Education, Inc.
Publishing as Prentice Hall

Data Drive Strategy


Organizations are drowning in data.


E
-
marketers must determine how to glean insights
from billions of bytes of data.


Marketing insight occurs somewhere between
information and knowledge.


Purina, for example, sorts through hundreds of
millions of pieces of data about 21.5 million
consumers to make decisions.

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Knowledge management is the process of managing
the creation, use, and dissemination of knowledge.


Data, information, and knowledge are shared with
internal decision makers, partners, channel
members, and sometimes customers.


Examples of the uses of knowledge management
can be found in Exhibit 6.3.

Marketing Knowledge Management

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Uses of Knowledge Management

Use in the Telecom Industry

Representative Firm

Scanner Check
-
Out Data Analysis

Call Volume Analysis

Equipment Sales Analysis

Customer Profitability Analysis

Cost and Inventory Analysis

Purchasing Leverage with Suppliers

Frequent
-
Buyer Program Management

AT&T

Ameritech

Belgacom

British Telecom

Telestra Australia

Telecom Ireland

Telecom Italia

Use in the Retail Industry

Representative Firm

Scanner Check
-
Out Data Analysis

Sales Promotion Tracking

Inventory Analysis and Deployment

Price Reduction Modeling

Negotiating Leverage with Suppliers

Frequent
-
Buyer Program Management

Profitability Analysis

Product Selection for Markets

Wal
-
Mart

Kmart

Sears

Osco/Savon Drugs

Casino Supermarkets

W. H. Smith Books

Otto Versand Mail Order

Amazon.com

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as Prentice Hall

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The Electronic Marketing Information System


Marketers manage knowledge through a marketing
information system (MIS).


Many firms store data in databases and data warehouses.


The internet and other technologies have facilitated
data collection.


Secondary data provides information about competitors,
consumers, economic environment, etc.


Marketers use the Net and other technologies to collect
primary data about consumers.

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Source 1: Internal Records

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9


Accounting, finance, production, and marketing
personnel collect and analyze data.


Sales data


Customer characteristics and behavior


Universal product codes


Tracking of user movements through web pages


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Source 2: Secondary Data


Can be collected more quickly and less expensively
than primary data.


Secondary data may not meet e
-
marketer’s
information needs.


Data was gathered for a different purpose.


Quality of secondary data may be unknown.


Data may be old.


Marketers continually gather business intelligence by
scanning the macroenvironment.

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Public and Private Data Sources


Publicly generated data


U.S. Patent
Office


CIA World Factbook


American Marketing
Association


Wikipedia


Privately generated data


comScore


Forrester
Research


Nielsen/NetRatings


Commercial online
databases

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Source 3: Primary Data


Primary data are information gathered for the first
time to solve a particular problem.


Primary data collection enhanced by the internet:


Experiments


Focus groups


Observation


Survey research


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Ethics of Online Research

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13


Companies conducting research on the Web often
give respondents a gift or fee for participating.


Other ethical concerns include:


Respondents are increasingly upset at getting unsolicited e
-
mail requests for survey participation.


“Harvesting” of e
-
mail addresses from newsgroups without
permission.


“Surveys” for the sole purpose of building a database.


Privacy of user data.

Monitoring the Social Media

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Companies must now monitor numerous web pages,
blogs, and photo sites in order to learn what is
being said about their brands or executives.


Companies can hire public relations firms or online
reputation management firms to help.


They can also set up automated monitoring systems
using e
-
mail, RSS feeds, or special software.

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Publishing as Prentice Hall

Other Technology
-
Enabled Approaches


Client
-
side Data Collection


Cookies


Use PC meter with panel of users to track the user
clickstream.


Server
-
side Data Collection


Site log software


Real
-
time profiling tracks users’ movements through a
Web site.

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Publishing as Prentice Hall

Real
-
Space Approaches


Data collection occurs at off
-
line points of purchase.


Real
-
space techniques include bar code scanners and
credit card terminals.


Catalina Marketing uses the UPC for promotional
purposes at grocery stores.


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Marketing Databases & Data Warehouses

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Product databases hold information about product
features, prices, and inventory levels; customer
databases hold information about customer
characteristics.


Data warehouses are repositories for the entire
organization’s historical data, not just for marketing
data.


Data are stored in the data warehouse system and
used for analysis by marketing decision makers.

Data Analysis and Distribution

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Four important types of analysis for marketing
decision making include:


Data mining


Customer profiling


RFM (recency, frequency, monetary value) analysis


Report generating

Knowledge Management Metrics

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Two metrics are currently in widespread use:


ROI: total cost savings divided by total cost of the
installation.


Total Cost of Ownership (TCO): includes cost of
hardware, software, labor, and cost savings.